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Journal ArticleDOI

New service development: areas for exploitation and exploration

01 Apr 2002-Journal of Operations Management (No longer published by Elsevier)-Vol. 20, Iss: 2, pp 135-157
TL;DR: The management of new service development (NSD) has become an important competitive concern in many service industries as discussed by the authors, however, NSD remains among the least studied and understood topics in the service management literature.
About: This article is published in Journal of Operations Management.The article was published on 2002-04-01. It has received 688 citations till now. The article focuses on the topics: Service system & New product development.
Citations
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Journal Article
TL;DR: The proposed method based on group decision-making scenario to assist business managers in measuring performance of service innovation manipulates the heterogeneity integration processes and avoids the information loss effectively.
Abstract: The growing influence of service industries has prompted greater attention being paid to service operations management. However, service managers often have difficulty articulating the veritable effects of their service innovation. Especially, the performance evaluation process of service innovation problems generally involves uncertain and imprecise data. This paper presents a 2-tuple fuzzy linguistic computing approach to dealing with heterogeneous information and information loss problems while the processes of subjective evaluation integration. The proposed method based on group decision-making scenario to assist business managers in measuring performance of service innovation manipulates the heterogeneity integration processes and avoids the information loss effectively. Keywords—Group decision-making, Heterogeneity, Linguistic computing, Multi-criteria, Service innovation

1 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigate the determinants of the number of service innovations and their interrelationship with customer satisfaction and firm value, while controlling for both firm-and market-specific factors.
Abstract: As economies in developed and developing countries are increasingly driven by services, the introduction of new services to satisfy customers and improve firm value is becoming a critical issue for managers in both services- and goods-dominant firms. However, prior research on innovation has primarily focused on goods, leaving open important research questions relating to service innovations. We empirically investigate the determinants of the number of service innovations and their interrelationship with customer satisfaction and firm value, while controlling for both firm- and market-specific factors. Furthermore, we examine how these effects differ between Internet-Enabled Service Innovations (IESIs) and Non-Internet-Enabled Service Innovations (NIESIs). We develop a conceptual model and a system of equations that link service innovations, customer satisfaction and firm value. We model the determinants of the number of service innovations, using a zero-inflated Poisson (ZIP) model. We estimate our model on a unique panel data set that we assembled from multiple data sources across multiple industries, using a seemingly unrelated regression (SUR) approach and controlling for unobserved heterogeneity through fixed effects. Our results reveal important insights. IESIs are more strongly influenced by financial resources of the firm and by market growth than NIESIs are. Surprisingly, neither IESIs nor NIESIs have a significant direct effect on customer satisfaction. However, IESIs have a positive and significant effect on firm value.

1 citations

Journal Article
TL;DR: In this article, the conceptual-theoretical basis of Service Development Management (SDM) was adapted to the planning of new prevention services in the Minas Gerais Military Police (PMMG - Policia Militar de MinasGerais).
Abstract: The chaotic situation faced by the public safety system in Brazilian states has forced authorities to replace ineffective reactive police strategies with “community preventive actions” to fi ght criminality. However, the military police lacks necessary instruments to develop fast new prevention services that have the quality and effectiveness the community desires. This paper describes how the conceptual-theoretical basis of Service Development Management (SDM) was adapted to the planning of new prevention services in the Minas Gerais Military Police (PMMG - Policia Militar de Minas Gerais). The work consisted of two interventions: 1) formulating a management pattern for developing preventive services; 2) creating a management instrument for gathering, evaluating, and selecting service ideas, and internal launching of new services. The methodology of action-research was used as the engaging strategy. The conclusion is that transposing the SDM conceptual-theoretical basis from private companies to the PMMG is possible with minor changes which are mostly related to the nature of the corporation. Nevertheless, it must be said that the similarities between principles and characteristics of preventive policing services and those of private companies have made such transposition easier.

1 citations

References
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Journal ArticleDOI
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.

16,377 citations

Journal ArticleDOI
TL;DR: In this paper, the authors organize the product development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving, and synthesize research findings into a model of factors affecting the success of product development.
Abstract: The literature on product development continues to grow. This research is varied and vibrant, yet large and fragmented. In this article we first organize the burgeoning product-development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving. Second, we synthesize research findings into a model of factors affecting the success of product development. This model highlights the distinction between process performance and product effectiveness and the importance of agents, including team members, project leaders, senior management, customers, and suppliers, whose behavior affects these outcomes. Third, we indicate potential paths for future research based on the concepts and links that are missing or not well defined in the model.

3,824 citations


"New service development: areas for ..." refers background in this paper

  • ...…that a common set of factors—development process, market/environment, organizational and strategic—impact NPD performance (Schilling and Hill, 1998; Brown and Eisenhardt, 1995; Montoya-Weiss and Calantone, 1994) and NSD performance (de Brentani, 1995; Cooper et al., 1994; Cooper and de Brentani,…...

    [...]

  • ...This challenge is particularly difficult given the diverse literature reporting NPD research (see Krishnan and Ulrich, 2001; Wind and Mahajan, 1997; Brown and Eisenhardt, 1995)....

    [...]

  • ...The extant NPD research does not have all the answers to the questions of product or service development, but there is a foundation that can be drawn on (see integrative reviews by Krishnan and Ulrich, 2001; Schilling and Hill, 1998; Wind and Mahajan, 1997; Brown and Eisenhardt, 1995)....

    [...]

  • ...Underlying the empirical work addressing the antecedents of development performance is the belief that a common set of factors—development process, market/environment, organizational and strategic—impact NPD performance (Schilling and Hill, 1998; Brown and Eisenhardt, 1995; Montoya-Weiss and Calantone, 1994) and NSD performance (de Brentani, 1995; Cooper et al....

    [...]

Journal Article
TL;DR: Porter as discussed by the authors argues that the Internet is not disruptive to most existing industries and established companies and, contrary to recent thought, the Internet itself will be neutralized as a source of advantage.
Abstract: Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them. Porter debunks such Internet myths as first-mover advantage, the power of virtual companies, and the multiplying rewards of network effects. He disentangles the distorted signals from the marketplace, explains why the Internet complements rather than cannibalizes existing ways of doing business, and outlines strategic imperatives for dot-coms and traditional companies.

3,558 citations


"New service development: areas for ..." refers background in this paper

  • ...The Internet dramatically reduces these barriers, as summarized in Table 3 ( Porter, 2001 )....

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  • ...A differentiation strategy is difficult to attain in a service environment where innovations are quickly and easily copied ( Porter, 2001 )....

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Book
01 Jan 1986
TL;DR: Innovation is defined as "the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order" as mentioned in this paper, where the authors focus on four basic factors new ideas, people, transactions, and institutional context.
Abstract: Innovation is defined as the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order. This definition focuses on four basic factors new ideas, people, transactions, and institutional context. An understanding of how these factors are related leads to four basic problems confronting most general managers: 1 a human problem of managing attention, 2 a process problem in managing new ideas into good currency, 3 a structural problem of managing part-whole relationships, and 4 a strategic problem of institutional leadership. This paper discusses these four basic problems and concludes by suggesting how they fit together into an overall framework to guide longitudinal study of the management of innovation.

3,513 citations


"New service development: areas for ..." refers background in this paper

  • ...Focusing on NPD, Van de Ven (1986) notes four problems related to the management of development and innovation efforts....

    [...]

  • ...Focusing on NPD, Van de Ven (1986) notes four problems related to the management of development and innovation efforts....

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